Pontiac Schools Secure $10 Million Emergency Loan
Loan goes towards financing employee payroll and vendors.
State officials are giving the Pontiac school district an emergency loan. The Michigan Department of Treasury approved a $10 million loan to the school system to cover employee payrolls and money owed to various vendors. Treasury spokesperson Terry Stanton says the cash-strapped Pontiac school district is making a good faith effort to right its financial ship.
“The district has taken numerous steps to address its deficit. In fact, according to the district, it’s dropped from a little over 50 million at the end of the 2013 fiscal year to about 39 million by the end of the 2014 fiscal year.”
Terry Stanton, Michigan Department of Treasury
Stanton says the district is projected to reduce its deficit to less than $36 million by the end of the year. He says the loan will be repaid over the next two decades, with the first principal payment due in about half a dozen years.
